Corn and soybean producers with delivery contracts to companies or cooperatives contracting grain have a new coverage option. John Deere Risk Protection, through an approved insurance carrier, now offers expanded coverage to producers who have delivery contracts with its Crop Delivery Contract Policy.
The Crop Delivery Contract Policy, available when a revenue-based Multi-Peril Crop Insurance (MPCI) policy is in place with JDRP, provides coverage in the event a producer is unable to satisfy a delivery contract due to a yield shortfall and the replacement cost rises above the federal crop insurance coverage price and the contract price.
The policy applies to corn and soybeans committed to delivery contracts. Subject to state approval, it will be available in the following states for the 2009 crop year: Arkansas, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin.
Price of the policy will vary, depending on the type of the customer’s underlying federal policy as well as the total number of bushels the customer has under contract as compared to the number of bushels covered under his federal policy.